NEW YORK (TheStreet) -- Stocks faded Thursday afternoon, even as crude oil closed above $42 a barrel and the energy sector soared. 

Benchmark indexes were trading well off session highs. The S&P 500 was up 0.7%, and the Nasdaq rose 0.8%. The Dow Jones Industrial Average climbed 0.7%. 

Crude oil rocketed higher, boosted by hopes that a rebound on global markets could stimulate demand. Crude futures hit six-year lows earlier this week. West Texas Intermediate crude closed 10.3% higher to $42.56 a barrel, its biggest one-day percentage gain since June 2012. 

Major oilers Exxon Mobil (XOM) - Get Exxon Mobil Corporation Report , PetroChina (PTR) - Get PetroChina Company Limited Sponsored ADR Report , Royal Dutch Shell (RDS.A) , Chevron (CVX) - Get Chevron Corporation Report , Total (TOT) - Get Total SA Sponsored ADR Class B Report , and BP (BP) - Get BP p.l.c. Sponsored ADR Report were all higher, while the Energy Select Sector SPDR ETF (XLE) - Get Energy Select Sector SPDR Fund Report jumped 3.7%. 

Global markets rose after U.S. stocks staged a major rebound on Wednesday with benchmark indexes closing with their biggest gains since November 2011. In Europe, Germany's DAX gained 3.2%, France's CAC 40 added 3.5%, and the FTSE 100 in London gained 3.6%.

Asian markets closed sharply higher, reacting to the U.S. rally and absorbing another market-stabilizing move from China's central bank announced on Wednesday. The People's Bank of China announced plans to inject 140 billion yuan ($21.80 billion) into its financial system, which will take the form of a short-term liquidity adjustment (SLO) operation.

The Shanghai Composite closed 5.3% higher, the Hang Seng in Hong Kong added 3.5%, and Japan's Nikkei gained 1.1%.

Second-quarter economic growth was revised up to 3.7% from 2.3%, according to the U.S. Commerce Department, far higher than an estimated increase to 3.3%. Consumer spending was revised to 3.1% from 2.9%.

TheStreet Recommends

"The economy regained a massive amount of momentum in the second quarter and all the evidence from July's activity and employment data suggests that momentum continued into the third quarter," said Paul Ashworth, chief U.S. economist at Capital Economics.

Weekly jobless claims fell by 6,000 to 271,000 in the week ended August 22, according to the Labor Department. The decrease was the first after four weeks of gains. Economists had expected initial claims for unemployment benefits to fall slightly faster to 270,000. Claims remained below 300,000 for the 25th week.

The housing recovery remained sound after pending home sales climbed 0.5% in July, according to the National Association of Realtors. The pending home sales index rose 7.4% from a year ago. The West was the only region with weakness as sales fell 1.4%.

Athens is undergoing even more political uncertainty after 53 of 201 Syriza party members resigned from their positions, arguing they could not serve the current austerity program. Greek prime minister Alexis Tsipras resigned last week after seven months in power. Greek voters will head to the polls on September 20.

Boeing (BA) - Get Boeing Company Report added 1.3% after agreeing to a preliminary deal to settle a lawsuit tied to an alleged mishandling of 401(k) employee plans. The suit charged the company with choosing higher-cost mutual funds, making decisions to benefit other Boeing vendors, and allowing excessive fees.

In earnings news, Avago Technologies (AVGO) - Get Broadcom Inc. Report jumped more than 8% after posting quarterly sales up 36% from a year earlier. Wireless communications revenue jumped 69%, driven by sales of RF components in iPhones and 4G-equipped devices.

Williams-Sonoma (WSM) - Get Williams-Sonoma, Inc. Report  dropped 7% after reporting a disappointing third-quarter and full-year outlook. The retailer expects to earn third-quarter profit between 68 cents and 73 cents a share, below analysts' estimates of 75 cents. Full-year forecasts of $3.35 to $3.45 came in below estimates of $3.48.

Tiffany & Co. (TIF) - Get Tiffany & Co. Report stumbled 2% after missing profit estimates and on weaker sales due to a stronger U.S. dollar. Second-quarter earnings of 86 cents a share missed by 5 cents, while revenue of $990.5 million fell 0.2%. On a constant-currency basis, global sales increased 7%.

JM Smucker (SJM) - Get J.M. Smucker Company (SJM) Report earned $1.32 a share in its first quarter, 9 cents above estimates, while revenue of $1.95 billion beat forecasts by $50 million. Shares were up 6.4%.

Dollar General (DG) - Get Dollar General Corporation Report reported a mixed second quarter with earnings of 95 cents a share a penny better than expected, while revenue of $5.1 billion fell short by $40 million. Full-year guidance was strong with an estimated 8% to 9% increase in total sales expected. Shares fell 4.2%.